Home > American Racket. Debt Deregulation, Bubbles, Bailouts and GoldplatedLies > Debt Exploding ! Rich getting Richer! Rampant Corruption!

Debt Exploding ! Rich getting Richer! Rampant Corruption!

Three stories ripped from today’s headlines once again illustrate the economic war being carried out on the average American.
Debt, Debt, Debt: 90% of Americans Experience Income Decline As Wealth Gets Sucked Back Into Top .1% — Debt Explodes As We Try to Make Ends Meet.
Amped Status via AlterNet By David DeGraw
The dramatic increase in economic inequality and poverty, along with the unprecedented rise in wealth within the top one-tenth of one percent of the population has not happened by mistake. It is the designed result of deliberate governmental and economic policy. It is the result of the richest people in the world, and the “too big to fail” banks, using the campaign finance and lobbying system to buy off politicians who implement policies designed to exploit 99.9 percent of the population for their financial gain. To call what is happening a “financial terrorist attack” on the United States is not using hyperbole; it is the technical term for what is currently occurring…………..
The rich have never been richer, while their paid-off politicians make budget cuts for the poor and middle class, and cause the cost of basic necessities to skyrocket.
To read this entire post click here.

Is Standard and Poor’s Manipulating US Debt Rating to Escape Liability for the Mortgage Crisis?
From Firedoglake By: Jane Hamsher

“On July 21, 2010 President Obama signs Dodd-Frank into law.  Prior to Dodd-Frank, the courts found that credit ratings are expressions of opinion that were protected under the first amendment, subject to a demonstration of actual malice:

The Dodd-Frank Financial Reform Act stripped away those protections, so that CRA’s were now subject to the same expert liability as an auditor or securities analyst, and required only a “knowing” or “reckless” state of mind for liability, rather than proof of scienter.  It also repealed Section 436 of the Securities Act of 1933, which granted “safe harbor” for ratings, which were part of a prospectus.

Which, for obvious reasons, made the ratings agencies extremely nervous.

In October 2010 S&P issued its first threat to downgrade US debt: “If the U.S. government maintains its current policies for the next 40 years in the face of rising health care and pension spending pressure, it is unlikely that Standard & Poor’s Ratings Services would maintain its ‘AAA’ rating on the U.S.”  The report paints a target on the back of Social Security and Medicare, says nothing about the wars, the Bush tax cuts, private health care costs or the absurdity of 40 year projections.
Ratings agencies are supposed to be reactive and analyze only what they see.  They are not supposed to explicitly or implicitly give  ”assurance or guarantee of a particular rating prior to a rating assessment.”  By prescribing not only an austerity package for the United States, but stating that “in the long term, the U.S. AAA rating relies on reforms” of Social Security and Medicare, they most assuredly broke that rule.”

To read this entire post click here.

Is the SEC Covering Up Wall Street Crimes?
From Rolling Stone By Matt Taibbi
By whitewashing the files of some of the nation’s worst financial criminals, the SEC has kept an entire generation of federal investigators in the dark about past inquiries into insider trading, fraud and market manipulation against companies like Goldman Sachs, Deutsche Bank and AIG. With a few strokes of the keyboard, the evidence gathered during thousands of investigations – “18,000 … including Madoff,” as one high-ranking SEC official put it during a panicked meeting about the destruction – has apparently disappeared forever into the wormhole of history.

Under a deal the SEC worked out with the National Archives and Records Administration, all of the agency’s records – “including case files relating to preliminary investigations” – are supposed to be maintained for at least 25 years. But the SEC, using history-altering practices that for once actually deserve the overused and usually hysterical term “Orwellian,” devised an elaborate and possibly illegal system under which staffers were directed to dispose of the documents from any preliminary inquiry that did not receive approval from senior staff to become a full-blown, formal investigation. Amazingly, the wholesale destruction of the cases – known as MUIs, or “Matters Under Inquiry” – was not something done on the sly, in secret. The enforcement division of the SEC even spelled out the procedure in writing, on the commission’s internal website. “After you have closed a MUI that has not become an investigation,” the site advised staffers, “you should dispose of any documents obtained in connection with the MUI.”
To read this entire post click here.

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  1. September 1, 2011 at 9:14 am

    Now that is some good literature.

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